Most Asian stock markets were lower on Friday (21/6) as Japan’s May inflation data came in slightly lower than expected, putting the country’s rate hike plans at risk.
The country’s core inflation – which excludes fresh food prices – stood at 2.5%, while economists polled by Reuters expected it to rise to 2.6%, up from 2.2% in April.
So-called “core” inflation, which excludes fresh food and energy prices, reached 2.1%, up from 2.4% in April. This measurement is considered by the Bank of Japan in the formation of the country’s monetary policy.
Japan’s headline rate rose to 2.8% from 2.5% in April.
In this climate, the Japanese Nikkei 225 fell slightly, by 0.07% to 38,621.00 units. Softbank fell 3.14% after Chief Executive Officer Masayoshi Son said the company needed “huge capital” to develop its AI robotic system.
South Korea’s Kospi lost 0.83% to close at 2,784.25. In Hong Kong, the Hang Seng fell 1.49% to 18,040.00, while in mainland China the Shanghai Composite lost 0.24% to 2,998.14 and the Shenzhen Component fell slightly by 0.04% to 9,064.84 units.
In Australia, the S&P/ASX 200 moved higher, gaining 0.34% to 7,796.00.
The yen weakened for the seventh day in a row, falling to 158.95 (yen) against the US dollar.
Japan’s monetary policy chief Masato Kanda said the government is ready to take a step to support the volatile currency market hit by the economy, according to Reuters, as the US Treasury Department placed Japan in “monitor” money, but do not classify it as a money manipulator.